Question 6 The following selected information is provided for Friendly Bank of Canada for the fiscal years ended December 31. (All figures in thousands except dividends per common share and price per common share). 2020 Total dividends paid to common shareholders Dividends per common share Total dividends paid to preferred shareholders Profit (loss) Weighted average number of common shares Common shareholders' equity Price per common share 2021 $1,073 $3.11 $190 $3,296 353 $11,160 $102.00 $968 $2.76 $164 $2,646 355 $10,024 $87.60 2019 $902 $2.66 $177 $(32) 339 $8,358 $72.20 Calculate the following ratios for 2021 and 2020. (Round answers to 2 decimal places, e.g. 52.76 or 52.76%.) 2021 2020 Payout ratio % % 34.75 38.93 Earnings per share 8.80 Return on common shareholders' equity % % Price earnings ratio : 1 : 1 Question 7 On April 7, 2021, Mo's Motor Corp. had a balance of $387,500 in its Common Shares account and the total number of shares issued was 31,000. On April 8, 2021, Mo's paid $16,100 to reacquire 1,400 shares. On November 22, 2021, the company paid $43,500 to reacquire 2,900 shares. On December 30, the company issued 7,000 shares for $17.50 per share. (a) Your answer is correct. Determine the average per share amount on April 7 and November 22, 2021. (Round answer to 2 decimal places, e.g. 15.25.) Average per share amount 12.5 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 1 of 15 used (b) Record the transactions for the reacquisitions of shares and issue of shares. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Apr. 8 Nov. 22 Dec. 30 Question 8 On January 1, 2021, Kraft Company had 68,000 common shares, recorded at $544,000. The company follows IFRS. Assume the balance in Retained Earnings at the beginning of the year is $400,000 and profit for the year was $185,000. During the year, the following transactions occurred: Apr. Issued 10,000 common shares at $10 per share. 1 June Declared a 7% stock dividend to shareholders of record on September 5, distributable on September 20. The 15 shares were trading for $13.50 a share at this time. Sep. Announced a 2-for-1 stock split. Shares were trading at $11.25 per share at the time. 21 Nov. Issued 2,000 common shares at $3.40 per share. 1 Dec. Repurchased 10,000 common shares for $5 per share. This was the first time Hum had repurchased its own 20 shares. Dec. 27 Paid cash dividends of $40,000. (a) Prepare the journal entries for the above transactions. (Credit account titles are automatically indented wh amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account and enter o for the amounts. Record journal entries in the order presented in the problem. Round av per share to 2 decimal places, e.g. 15.21 and final answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Apr. 1 Cash > Dec. 20 Dec. 20
